KUALA LUMPUR – Hopes for easing tensions between the world’s two largest economies grew on Sunday as the United States and China held the second day of trade talks in Kuala Lumpur, setting the stage for a potentially “productive meeting” between Presidents Donald Trump and Xi Jinping later this week.
US Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent met with Chinese Vice Premier He Lifeng and top negotiator Li Chenggang on the sidelines of the ASEAN summit. The discussions — the fifth in-person round since May — covered a wide range of issues, including rare earth exports and extending the existing trade truce. “I think that we’re getting to a spot where the leaders will have a very productive meeting,” Greer told reporters.
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The talks come amid renewed strains after Washington threatened to impose 100% tariffs on Chinese goods starting November 1, in retaliation for Beijing’s expanded export controls on rare earth magnets. Both sides are seeking to prevent a full-scale escalation that could further disrupt global markets.
Trump, who arrived in Malaysia for the ASEAN summit on Sunday, is expected to meet President Xi in South Korea on October 30. Key topics for the high-stakes dialogue include Chinese purchases of US soybeans, Taiwan, and the detention of Hong Kong media tycoon Jimmy Lai. Trump also signaled he would seek China’s cooperation on issues involving Russia’s war in Ukraine.
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The fragile trade truce reached earlier this year has been tested by new sanctions and investigations, including a fresh US probe into China’s alleged failure to uphold the 2020 “Phase One” trade deal. Analysts say any progress made in Kuala Lumpur could stabilize the $660 billion economic relationship — though lasting peace remains uncertain.